The Restriction For Accounting Information

With the development of productivity and social evolution, our dependence on information increases accordingly.? Accounting, as an economic information system, plays an ever-growing important role in economic development.? In our real life, however, accounting information is often badly distorted in many cases and this seriously impairs its function.? There are already many articles available exploring the distortion of accounting information.? But these articles are mostly focused on the external factors, including systems, human, and environment.? The study of the root that causes accounting information distortion and inherent limitation of accounting information is inadequate and this is the area this article intends to explore.The article elaborates in the following eight chapters: Chapter 1 is the introduction of the article.? A real case is introduced in the first section and serves to explain the importance of this study.? The second section briefly states the definition and importance of accounting information, while the brief summary of significant accounting information distortion problems is introduced in the third section.? The fourth section briefs the study status of this issue and states the thesis of this article study the limitedness of accounting information.Chapter 2 explains the basic concepts and system of accounting information, including its system structure, content, characteristics and function in both micro-and macro-economy.? It also introduces the quality of accounting information and quality assessment systems.Chapter 3 to 6 are theoretical analysis part of this article.? The causes of accounting information limitation are elaborated from four respects including accounting theory, the attributes of accounting information, the academic characteristics of accountancy, and relevancy of the generation of information.? Chapter 3 and 4 analyse the limitedness of accounting information from the eight quality characteristics of it and from the four accounting basic assumptions and basic principles respectively.? The inevitability of accounting information limitation is expounded in Chapter 5 from four respects, which cover the theoretical and methodological attributes of accountancy, the structure of accounting theory, the severance between accounting theory and practice, and the inherent deficiency of accounting information.? Chapter 6 analyses the limitation of accounting information from the influence of its users and stakeholders, the professional practice of certified public accountants, and the inherent limitation of audit approaches. Chapter 7 is the case study part and it summarizes the key points and causes leading to the distortion of accounting information.? The case of "HeBei Mobile Communications Ltd" is adopted and by analysing the difference of its key accounting indicators, such as net profit and net assets, under year 2001 PRC Accounting Standard and HongKong Accounting Standard, the means to avoid such information difference for limitation of accounting information, is further discussed. Chapter 8 concludes the main viewpoints and points the insights and also the improvement room of the article. The development direction and outlook of accounting information is analysed here.